Analysis /Issues to be solved

a) The merger of Digi and Celcom failed

Both companies will be in use by May 2019 and said the merger will be completed within
three months. However, there are still three months that it has been rumored that the two
companies do not need to merge. There are several factors in the problem of division of
shares, Axiata uses the same equity value many times ask and want where Axiata is an
indicator of the company If examined from shareholding, Telenor will appoint the CEO
of their members only and appoint a representative of Axiata as Chairman combination
only. The second issue is the headquarters problem. If it can be seen that the Telenor
company under Digi's management wants the consumer headquarters in Singapore, both
companies that use Axiata want the headquarters to be located in the country. This is
quite impossible because Axiata is not the leader of the joint venture company in the
future. Issue Three problems regarding employment. This will lead to duplication of
positions. Therefore, the company will employ employees.

b) Issue lessen Axiata

Malaysia and Sri Lanka decided to nominate two delegates to settle the question of the
extension of the service licence for the telecommunications sector involving Dialog
Axiata Plc (Dialog Axiata), South Asia's largest foreign investor. It is acknowledged that
the Malaysian company's request to renew a licence to begin operations in Sri Lanka has
been deferred for the past 30 months, making it impossible for the major investments
expected in Sri Lanka to be made. Dialog Axiata is an Axiata Company affiliate owned
by Khazanah Nasional Bhd. Prime Minister Datuk Seri Najib Razak has announced that
the selection of two officials for each country has been accepted by the President of Sri
Lanka, Maithripala Sirisena, during today's four-point conference. The Axiata Dialogue,
he added, was Sri Lanka's biggest foreign investor, with overall contributions reaching
US$ 2.2 billion (RM9.02 billion). One of the things that is well established is the renewal
of the licenses demanded by the Axiata Dialogue, which is still pending, and the
President intends to develop a process to nominate two of its representatives and in the
immediate future, to appoint two of Malaysia's representatives to address this matter.
 https://www.bharian.com.my/berita/nasional/2017/12/365069/isu-lesen-dialog-axiata-
akan-selesai-pm

c) Azman Mokhtar resigned as Chairman of Axiata

Axiata Group Bhd (Axiata) has announced the resignation of Tan Sri Azman Mokhtar as
President, Non-Independent Non-Executive Director and Khazanah Nasional Bhd
representative after 10 years of excellent service. Axiata said in a statement that Azman is
a visionary leader who, since its establishment in 2008, has been the backbone of Axiata's
growth and expansion. Under his current leader, Axiata has appeared as one of the largest
telecom groups in Asia customer "Axiata's base has grown from 40 million to 350 million
people in 11 countries over the last 10 years to the end of December, making it the
second largest telecommunications group in the South East and South Asia regions.

https://www.bharian.com.my/bisnes/korporat/2018/08/457535/azman-mokhtar-letak-
jawatan-pengerusi-axiata
d) Technical Problems, Celcom Is Trying to Resolve Network Disruption Issues as
Soon as Possible.
Ever since afternoon, several consumers of Celcom have been moaning and voicing their
annoyance at the issue of network interruption. Not only is there no internet connection
available, but people are now wondering that there is no network coverage at all. Apart
from users of Celcom, this disturbance also impacts users of MVNOs who are using their
networks, such as Yodoo and Tune Talk, who are seen to communicate the same thing on
social media. Subsequently, the issue made the title of the mobile operator trending
worldwide.

https://www.buzzkini.com/trending/2020/10/04/isu-teknikal-celcom-cuba-selesaikan-
masalah-gangguan-rangkaian-secepat-mungkin/
e) The former director of Axiata subsidiary pleaded not guilty to corruption charges

A former director of an Axiata subsidiary pleaded not guilty at the Kuala Lumpur
Sessions Court on Wednesday to two counts of accepting bribes in connection with a
telecommunications company's supply project in August 2017 and September 2018.
The accused, Kok Chin Peng, 41, pleaded not guilty after the charge was read out by an
interpreter before Judge Manira Mohd Nor. According to the first charge, Chin Peng
allegedly demanded a 10 per cent bribe for Axiata's Customer Support Managed Services
and 20 per cent for Axiata's MIFE Billing Managed Services from a claim by Skytree
Sdn Bhd to Axiata Digital Services Sdn Bhd every month. Chin Peng is alleged to have
committed the offense as an incentive for him to help Skytree Sdn Bhd obtain the work of
providing customer support services at Axiata Digital Services Sdn Bhd. While the
second charge, he allegedly asked for a bribe of 24 percent of the monthly claims for the
Axiata's Customer Support Managed Services project, Axiata's MIFE Billing Managed
Services and Apigate's Onboarding Managed Services. Meanwhile, 19 percent for the
software development / software enhancement project from Lee Kok Seorng as an
incentive for him to help the same company get the customer service supply work at
Apigates Sdn Bhd. Chin Peng was charged with committing the offense between August
2017 and September 2018 at Jalan Klang Lama, Kuala Lumpur. He was charged with an
offense under Section 16 (a) (A) of the Malaysian Anti-Corruption Commission (MACC)
Act 2009 (Act 694) which is punishable under Section 24 (1) of the same Act. If
convicted, he can be jailed for a period not exceeding 20 years or fined not less than five
times the total value of the bribe or RM10,000 whichever is higher.Counsel representing
the accused Mohd Shahrullah Khan Nawab Zadah Khan, however, requested that the case
be transferred to the Shah Alam MACC Court and agreed by MACC Deputy Public
Prosecutors Wan Shaharuddin Wan Ladin and Francine Cheryl Rajendram. The court
agreed to transfer the case to the Shah Alam MACC Court and allow the accused to apply
the bail set by the Shah Alam Court previously with the same additional conditions. The
case will be mentioned again on December 16.
 https://www.astroawani.com/berita-malaysia/bekas-pengarah-anak-syarikat-axiata-
mengaku-tidak-bersalah-tuduhan-rasuah-271224

Recommendations

a) promote affiliate marketing program

The affiliate marketing process is an activity where one company promotes another
company's products to earn commissions. If Axiata Group uses the affiliate marketing
process by encouraging other companies to be under its company for the purpose of
promoting good telecommunications is one of the wise actions because Axiata Group
managed to balance the economy in the field of communication.